Nortel Networks Corp. is moving its head office.
That piece of info comes from Ernst & Young’s latest Monitor’s Report, dated Sept. 25. Ernst & Young is Nortel’s court-appointed bankruptcy monitor.
Now Nortel is going from cushy to industrial. The company is ending its $6 million per-year lease of the 11-story building in Mississauga, Ontario, to migrate to a two-suite, 36,000 square-foot office near the airport. And we all know the desirability and appeal of office locations near the airport.
Nortel will raise about $497,000 from the sale of office assets (mostly office furniture, according to All About Nortel) to pay for the lease termination.
Ernst & Young’s report said Nortel’s total annual operating costs will go down to $1.2 million.
As Mark Evans at All About Nortel points out, Nortel has fallen far from its former real estate days of glory. A mere four years ago, the telecom equipment maker was sprawled out on 63 acres in Brampton, with 32,000 square feet. But that campus became property of Rogers Communications in 2005 when Nortel sold it for $100 million.